If you are unable to work due to sickness or an injury, disability income insurance can help to take care of living expenses. By replacing a portion of your income, disability income insurance can help to provide financial security until you get back on your feet and are able to return to work. Short term insurance can replace a portion of your income during the initial weeks of a disabling illness or accident, while long term insurance can work for a more extended period of time. You may have disability insurance through your employer, but if not, additional individual disability insurance may be able to provide protection for you and your family.
No one knows what the future will hold, so it is important to do your best to prepare for what life may bring. Here are a few tips to help with understanding disability insurance.
- If you or others depend on your income, you need disability insurance. Social Security benefits are not available if you are expected to be out of work for less than a year. Just one year without income could have a significant impact on your finances.
- Most long-term absences are due to illness, not accidents. While many people think that most absences from work are due to accidents, this is not the case. Instead, illnesses such as cancer and heart disease are the leading cause of missing work long-term.
- You need it even if you are young and healthy. Unfortunately, 1 in 4 people will become disabled before age 67. Disability insurance can help to offset the costs of being out of work.
- Some disability insurance is better than none. If your budget is especially tight, it still makes sense to buy enough disability insurance to cover your rent or mortgage. Disability insurance is more affordable than you might think.
- Make sure you know how much disability coverage you get from work. Look carefully at the coverage you already have to make sure that your basic living expenses will be taken care of in the event you become disabled.